Bitcoin Price News: Breaking $71K Barrier Could Trigger Explosive Move for BTC

Bitcoin (BTC) has jumped by 2.6% in the past 24 hours, but more relevant than this positive performance is the token’s apparent intention to break through a key resistance at $71,000 that could trigger its next explosive move.

Trading volumes have skyrocketed by 90% in the past day as bulls seem to be doing the best they can to squeeze bears out.

Crypto liquidations have jumped past $800 million during this period, emphasizing the relevance of this price level.

What’s even more interesting is that nearly half of that amount is from blown-up short positions, which indicates that a significant volume of stop orders sits above that $71,000 threshold.

Positive Momentum Accelerates as BTC Rises Past $71,500

We have been predicting for days that a break above this mark could unleash a strong rally for BTC to the $85,000 area as this is a major area of confluence between the 200-period exponential moving average (EMA) in the 4-hour chart and a strong horizontal resistance.

The Relative Strength Index (RSI) has made a U-turn in this lower time frame and just rose above the 14-period moving average, increasing the potential for a trend reversal.

Right now, the RSI is getting close to 60, which means that positive momentum is rapidly accelerating.

We see significant commitment from bulls to keep the price moving higher as BTC has already retreated twice off the $2,150 level, and buying pressure has persisted during the American session.

Hence, we might see a strong rally in the next few hours if bulls keep pushing BTC higher, as late bears who shorted Bitcoin after the latest drop will be trapped.

Meanwhile, early bears who still have open short positions may soon see their stop orders trigger if the price rises above this level.

Buy Signal Popped Up Today as Trump Paused Attacks on Iran

Moving down to the hourly chart, we got a buy signal on Monday morning during the Asian session as President Donald Trump said that he paused all strikes on Iranian power stations as negotiations with the government were progressing.

This could be the catalyst that the market needs to push BTC higher. Even though tensions in the Middle East are not necessarily bullish or bearish for cryptocurrencies, oil prices are expected to stabilize if the U.S. reaches an agreement with Iran to reopen the Strait of Hormuz.

The result would be lower expectations of a sudden spike in inflation, which means higher odds of a rate cut within the next few months once the new head of the Federal Reserve takes over the reins.

We would like to see a second buy signal after a break above the $71,500 to confirm a bullish outlook. In that case, an interesting opportunity for a long position would open up, offering a 5x risk-reward ratio if the price spikes to $76,000 in the near term.

Meanwhile, if traders keep the position open until the full potential of this rally is realized at $85,000, this trading opportunity would be even more attractive.